SIP Calculator
Calculate estimated returns on your monthly Systematic Investment Plan.
Investment Details
Total Value
Investment Breakdown
What is a SIP Calculator?
A SIP (Systematic Investment Plan) Calculator is a financial simulation tool that helps investors estimate the future value of their mutual fund investments. Unlike a lump-sum investment, SIP involves investing a small, fixed amount regularly (usually monthly). This strategy leverages the power of 'Rupee Cost Averaging' and compounding over long periods.
Investing small amounts consistently is often more effective than waiting to invest a large sum. SIPs help you navigate market volatility—when the market is down, your fixed amount buys more units; when the market is up, your investment value grows. Over 5, 10, or 20 years, this discipline can create significant wealth.
The formula used for SIP estimation is: `FV = P × [ (1+i)^n - 1 ] / i × (1+i)`, where `P` is the monthly amount, `n` is the number of months, and `i` is the periodic interest rate. This formula is complex because it accounts for the fact that every single monthly installment earns interest for a different duration (the first installment earns for 10 years, the last one for only 1 month).
Our calculator does this heavy lifting instantly. It provides a split view: 'Invested Amount' (what you put in from your pocket) vs. 'Estimated Returns' (what the market gave you). Seeing the 'Returns' bar eventually become larger than the 'Invested' bar is the ultimate proof of long-term wealth creation.
1How to Use
- Monthly Investment: Enter the amount you can comfortably set aside every month (e.g., 5000).
- Expected Return Rate: Input a realistic annual return percentage (e.g., 12% for Equity Mutual Funds, 7% for Debt Funds).
- Time Period: Select how many years you plan to stay invested.
- View Projection: The Total Value card updates instantly.
- Check Details: Look at the table/charts to see how much of that total is your own money vs. profit.
★Key Features
- Wealth Visualization: Interactive charts clearly distinguish between principal and profit.
- Compounding Logic: Uses the accurate annuity due formula for precise monthly compounding.
- Inflation context: (Mental Note) Remember that 1 Crore in 20 years is worth less than today, so aim higher!
- Dynamic Currency: Adapts to your locale (₹ Ind / $ US / etc.).
- Sensitivity Analysis: Drag the sliders to see how small increases in 'Time Period' cause exponential jumps in wealth.